Credit Union Industry Achieves New Stability, CU Risk Index Shows Risk Holding at Favorable Lows

Credit Union Industry Achieves New Stability, CU Risk Index Shows Risk Holding at Favorable Lows

WILMINGTON, NC – June 9, 2025 – The American credit union industry has entered a new phase of stability, with systemic risk holding steady at a multi-year low for the third consecutive quarter, according to the latest data from Glatt Consulting's CU Risk Index. The report, which analyzes data through March 31, 2025, reveals that this period of calm follows a sustained trend of improvement, positioning the sector on solid footing for confident strategic planning.

The CU Risk Index—a robust assessment model that provides a transparent measure of relative risk for credit unions of all sizes—registered a score of 1.91 for the first quarter of 2025. This score has remained unchanged since the third quarter of 2024. Within the Index's 4-tier scoring system, where Score 1 represents the lowest risk, this consistent performance indicates strong and stable industry-wide financial health.

This stability is further reinforced by a significant year-over-year positive trend. The current score of 1.91 is a marked improvement from 1.95 in March 2024 and 1.98 in March 2023. This consistent decline demonstrates the industry's success in navigating economic headwinds and strengthening core financial ratios over the past two years.

According to the analysis, the current risk level is notable for its return to the norms seen before the 2008 financial crisis. It stands in stark contrast to the industry's peak risk score of 2.14 during that period, underscoring the sector's long-term resilience and effective management through volatile times.

"Seeing the industry’s resilience affirmed by this data is exactly why we felt it was time to evolve our approach to performance measurement," said Tom Glatt, Principal at Glatt Consulting. "We've built upon the foundation of our precursor model, the CU HealthScore, to create the CU Risk Index. While HealthScore rated the overall 'health' of an institution, the Risk Index is a much more robust assessment model designed for today's complex environment. It gives leaders a precise understanding of relative risk—how their institution measures up against the industry's past and present, and the trajectory of their own performance. It's about shifting from a static check-up to a dynamic strategic tool."

For credit union boards and leadership teams, these findings provide a data-driven foundation for proactive decision-making. The combination of sustained improvement and current stability allows for a greater focus on strategic initiatives, such as enhancing member relationships, investing in technology, and pursuing growth opportunities with confidence.

About the CU Risk Index

Descended from Glatt Consulting's original CU HealthScore model, the CU Risk Index is an innovative, subscriber-based platform that transforms complex financial call report data into clear, actionable insights. The Index is meticulously built on a dataset of over 500,000 observations per ratio and analyzes twenty-two critical financial ratios across Capital Adequacy, Earnings, Asset Quality, Liquidity, Member Relationship, and Growth. Its objective, 4-tier scoring system provides a transparent and robust assessment of relative risk applicable to credit unions of all sizes.

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